We agree with the National Association of Realtors®: American home buyers and home owners need access to affordable, safe mortgages in all local markets, no matter what’s happening in the economy. That's what NAR Director Tom Salomone told the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises last week.
To make sure consumers can get mortgages even when the economy falters, the government needs to continue to support the nation’s two giant mortgage guaranty companies, Fannie Mae and Freddie Mac, Salomone said.
Private companies buy mortgages from the lenders that make the loans retreat from the mortgage marketplace during extreme economic conditions. That’s been the case in 2011, when Fannie Mae, Freddie Mac, and FHA have guaranteed 90% of the loans used by consumers who purchased homes or refinanced existing mortgages.
NAR supports efforts to increase private capital in the housing finance market and to reduce the size of the government’s involvement, but “without some continued involvement by the federal government, we risk losing affordable, long-term, fixed-rate mortgage products,” Salomone said. “This would be devastating to middle-class home buyers and the housing market.”
Emcee Arah - "the REALTOR with Architectural Dimension" – is both a Certified Distress Property Expert (CDPE) and a Certified Investor Agent Specialist (CIAS). He is uniquely equipped to assist you in navigating today's residential real estate market and selling your home. Contact us online or by phone at (301) 452-5252. And don't forget to leave your comments below – we'd love to hear from you!